CVS Group PLC
LSE:CVSG
CVS Group PLC
CVS Group Plc is a holding company, which engages in the provision of veterinary services. The company is headquartered in Diss, Norfolk and currently employs 7,241 full-time employees. The company went IPO on 2007-10-10. The firm operates in the four business segments, namely Veterinary Practices, Laboratories, Crematoria and Online Retail Business. The company offers an integrated model with approximately 500 veterinary practices across its three territories, including eight specialist referral hospitals and 34 out-of-hours sites. Veterinary Practices provide specialist treatment for companion, equine and farm animals. The firm laboratories provide diagnostic services to CVS veterinary practices and third parties. The company offers a range of tests with the ability to tailor specific profiles to its customers' needs. Its crematoria provide pet cremation and clinical waste services to CVS practices and third-party practices, and cremations to animal owners. CVS online retail business, Animed Direct, sells prescription and nonprescription medicines, pet foods and a range of pet care products.
CVS Group Plc is a holding company, which engages in the provision of veterinary services. The company is headquartered in Diss, Norfolk and currently employs 7,241 full-time employees. The company went IPO on 2007-10-10. The firm operates in the four business segments, namely Veterinary Practices, Laboratories, Crematoria and Online Retail Business. The company offers an integrated model with approximately 500 veterinary practices across its three territories, including eight specialist referral hospitals and 34 out-of-hours sites. Veterinary Practices provide specialist treatment for companion, equine and farm animals. The firm laboratories provide diagnostic services to CVS veterinary practices and third parties. The company offers a range of tests with the ability to tailor specific profiles to its customers' needs. Its crematoria provide pet cremation and clinical waste services to CVS practices and third-party practices, and cremations to animal owners. CVS online retail business, Animed Direct, sells prescription and nonprescription medicines, pet foods and a range of pet care products.
Revenue Growth: CVS Group delivered first-half revenue of £341.8 million, up 6.6% year-on-year, mainly driven by acquisitions in Australia.
Profitability: Adjusted EBITDA rose 4.5% to £67.4 million, though the adjusted EBITDA margin slipped by 0.4 percentage points to 19.7% due to inflationary pressures.
UK Headwinds: Weaker consumer demand and the ongoing CMA investigation in the UK led to flat like-for-like sales and a disciplined approach to UK investment.
Australian Expansion: The company completed five Australian acquisitions for £23.3 million and expects annualized revenue of around £55 million from practices acquired to date.
Cash Conversion & Leverage: Operating cash conversion was strong at 72%, and leverage remains comfortable at 1.66x, below the 2x target ceiling.
Cost Pressures: Wage inflation increased employment costs to 52.4% of revenue, with further UK cost increases expected from April 2025 due to legislation.
Guidance Affirmed: Management remains confident in delivering full-year results in line with market expectations and targets a return to organic revenue growth in H2 2025.
Tech & Client Focus: Significant investment in technology, including a new Animed Direct website and cloud-based systems, aims to enhance client experience.
